Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (11804)	7/30/2001 2:21:28 PM
From: Frank A. Coluccio	Read Replies (3) \| Respond to of 12823

Mike, I, too, don't know what to make of the BT sale of the local loop. On the surface, thus far they've only discussed the twisted pair component. This represents the oldest and still agingest part of their inventory, primarily aimed at soho's and residentials. What of their wireless and fiber assets that also touch the last mile, albeit for other sectors? In addition to the fact that sometimes these facilities blur one another - as in the case of digital subscriber loops that are fed by fiber plant on one end and put out twisted pair on the other - many, if not most buildings where fiber is present, are actually fed by both forms of transmission media, both fiber and twisted pair, if not wireless on the roof, to boot. Transfering the local loop would be a monumental proposition, given that most of the staff who currently maintain it would have to be included with the asset transfer. Automation and documentation notwithstanding, almost everything that goes on in the outside plant is documented in the wetware of line personnel and administrative clerks who manage specific buildings, locales and territories. Here I'm referring to everyone from the records clerk to the 'plant man' on location, to the field foremen and second line managers. In a way, maybe to a great extent, those folks are indispensable to the ongoing functioning of the plant. Transferring these staff resources to a new entity would be an huge logistical and HR-intesne undertaking. Consider issues having to do with seniority, vesting, benefits, etc., and consider that a leaner, more-efficient takeover entity might not be so allowing of same. I would expect there to be a major labor relations issue here, if this were to move forward. FAC

To: MikeM54321 who wrote (11804)	8/1/2001 1:28:36 AM
From: elmatador	Read Replies (1) \| Respond to of 12823

Investors press BT on £8bn loop bid. Mike how much MONI is behind such deal? Since BT has a swicth plant of former GPT, Marconi may well be behind such deal. Investors press BT on £8bn loop bid By Simon Targett and Dan Roberts in London Published: July 31 2001 20:54GMT \| Last Updated: July 31 2001 21:40GMT Two of British Telecom's top 10 shareholders are to urge it to rethink its rejection of a £8bn ($11.4bn) bid for its local telephone network by Earth Lease, a consortium of private equity investors. BT dismissed the bid this week, saying that it stood little chance of success. Under the consortium's proposal, BT's telephone lines, connecting local exchanges to most of the UK's residential and business phone users, would be bought, and then leased back to the telecoms company. But leading shareholders, who were prominent supporters of BT's £6bn rights issue, believe the deal could have a twin benefit: offloading a non-core business and cutting the remaining debt by more than half. One shareholder, with a stake of more than 2 per cent, said: "There are good arguments for BT detaching itself from this local business; the return [on the capital] is virtually nothing." Figures, provided by BT to Oftel, the industry watchdog, suggest the local network of 28.9m lines is run at break-even level, even though the capital employed amounts to about £8.4bn, roughly the sum offered by Earth Lease. There were questions over the price offered by Earth Lease. But shareholders said this should be the subject of negotiation. BT said it was happy to listen to the views of shareholders but insisted there were no immediate plans to change its view of the deal. It said the original proposal, which it received from Earth Lease in May, was just too vague to be worth considering. It does not believe the concept is an attractive one for BT shareholders. On Tuesday night Earth Lease said it was ready to outline its proposals to any BT shareholders who wished to find out more details, but insisted it had not yet made contact with any investors. Instead the consortium is believed to be examining ways to increase political pressure on BT to re-examine the proposal in the interests of stimulating demand for broadband services.